A large technology Company decides to create an entrepreneurship friendly space, where small enterprises can operate in close proximity to one another. To create this space, which will be called Zone Forty-Two, the Company will construct office space, which will be rented to tenants for free. The Company is considering two start-up firms, B Enterprises (a business software producer) and M Enterprises (a medical software producer). Both firms are currently located in different small towns of California, where they work out of their homes hence pay no rent. The sales volume for a firm if it locates at Zone Forty-Two depends on whether the other firm is also present. These sales volumes, along with the firms’ sales at their current home locations, are presented in Table 1.
table 1 home- town locations zone forty-two(alone) zone forty-two(with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
Give an intuitive explanation why the sales figures are in the last column of Table 1 differ from the first two columns of the table. Hint: Elaborate on different types of economies that are likely to benefit firms locating next to each other in Zone Forty-Two.

Answers

Answer 1

Answer:

Zone-Forty-Two

Types of Economies Benefiting Firms Locating Next to Each Other:

Basically, internal and external economies of scale result from firms locating next to one another.  While internal economies of scale are specific to a firm because they are internally generated savings, external economies of scale bring about larger changes outside the firm so that all the firms that are located next to one another benefit.

For example, when firms locate next to each other, there is increased procurement management, availability of specialized managers, availability of financial sources, and market improvement.  These are internally-focused economies.

On the other hand, the external benefits that come from agglomeration of firms include the availability of common infrastructure, supply chain, innovation and ideas, and ability to lobby the authorities.

As a result of these economies or benefits, firms b and m enterprises are able to generate more increased sales as they locate close to each other at Zone Forty-Two than they could generate while they were located at their home-towns or alone at Zone Forty-Two.

Explanation:

a) Data and Calculations:

Firms' Sales

Firms               Hometown    Zone forty-two     Zone forty-two

                        locations              (alone)          (with other firm)

b enterprises        600                   600                       670

m enterprises       700                   700                       950

These economies resulting from proximate locations of firms include the growth of technical, marketing, commercial, financial benefits, and some network effects.  Therefore, it is always interesting to study how firms grow more as they compete and learn from one another than they do when they dominate their individual hometown markets.


Related Questions

Kyle had a splitting headache. His buddy Cyrus gave him a couple of lime-green pills to take away the pain. When Kyle awoke, Cyrus was lying next to him in a pool of blood. If Kyle is tried for a crime, what could be his defense?


insanity

duress

intoxication

necessity

Answers

Answer:

necessity

Explanation:

This is necessity beause it might have been on accident to help cyrus but became a bloody murder,seems like a 3rd or a second degree murder,most likely 3rd degree,it just happend.

Answer:

C

Explanation:

bro read it and u'll know other person is wrong

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:
Cash 7,500
Noncash assets 105,000
Liabilities 27,500
Anna capital 45,000
Brian capital 15,000
Cole capital 25,000
112,500 112,500
The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for 150,000, the liabilities were paid, and the remaining cash was distributed to the partners.
(A) Prepare a statement of partnership liquidation.
(B) Assume the facts as in (A) except that noncash assets were sold for 45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership, prepare a statement of partner liquidation

Answers

Answer:

The Partnership of Anna, Brian, and Cole

A) Statement of Partnership Liquidation:

Available cash for distribution = $157,500

Payment of liabilities =                   27,500

Cash available for distribution  $130,000

Distribution to partners:

Anna                                              67,500

Brian                                              30,000

Cole                                              32,500

Total distributed                      $130,000

B) Statement of Partnership Liquidation:

Available cash for distribution = $52,500

Payment of liabilities =                  27,500

Cash available for distribution  $25,000

Capital accounts balances =       85,000

Deficiency =                               $60,000

Distribution of deficiency to partners:

Anna 3/6                                      30,000

Brian                                            20,000

Cole                                              10,000

Total distributed                       $60,000

Explanation:

a) Data and Calculations:

Cash                       7,500

Noncash assets 105,000

Total assets        112,500

Liabilities            27,500

Anna capital       45,000

Brian capital       15,000

Cole capital       25,000

                         112,500

Profit sharing ratio = 3:2:1

Sales proceeds from noncash assets = $150,000

Total cash available = $157,500 ($150,000 + 7,500)

Total capital repaid                                     $85,000

Balance to be redistributed:     $45,000

Partners                                      Excess    Capital        Total

Anna 3/6                                    22,500    45,000     $67,500

Brian 2/6                                     15,000    15,000       30,000

Cole 1/6                                        7,500   25,000       32,500

Partial balance sheet data for Diesel Additives Company at August 31 are as follows:Finished goods inventory................$ 89,400Supplies.............................................$ 13,800Prepaid insurance..................................9,000Materials inventory..............................26,800Accounts receivable...........................348,200Cash.....................................................167,500Work in process inventory..................61,100Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31.

Answers

Answer:

Diesel Additives Company

Current Assets section

Materials inventory                                26,800

Work in process inventory                      61,100

Finished goods inventory                      89,400

Supplies                                                    13,800

Prepaid insurance                                    9,000

Accounts receivable                            348,200

Cash                                                        167,500

Total Current Assets                              715,800

Explanation:

Current Assets section of Diesel Additives Company's balance sheet at August 31 is shown above.

When a parent company sells land to a subsidiary at more than book value, the consolidation entries at the end of the period include a debit to the gain on the sale of land. When a parent purchases the bonds of a subsidiary from a nonaffiliate at less than book value, the consolidation entries at the end of the period contain a credit to a gain on bond retirement. Why are these two situations not handled in the same manner on the consolidation worksheet

Answers

Answer:

The reasons for these two situations not handled similarly are:

1. The first case involving the sale of land is a transaction between a parent and its subsidiary.  Their accounts are consolidated with gains from intercompany transactions eliminated because a parent company cannot recognize gains from sales to itself (group).  This implies that all intercompany gains can only be recognized when the sales involve external or non-affiliated entities.

2. In the second case, there is no parent-subsidiary relationship since one organization is described as a non-affiliate.  Therefore, there is no need to eliminate the intercompany profit arising from the transaction.  Instead, the gain is recognized.

Explanation:

The accounts of companies that are under common control are consolidated by the parent entity.  Therefore, during the consolidation process, it becomes necessary to eliminate all intercompany transactions that have not been externally affected.

Garcia Industries has sales of $176,500 and accounts receivable of $18,500. Assume all sales to be on credit. The industry average DSO is 27 days, based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 3.0% on any cash freed-up by this change, assuming other things are held constant, by how much would the net income be affected?

Answers

Answer:

$163.32

Explanation:

Days Sales Outstanding = 365 * Accounts receivable / Sales

If the Days Sales Outstanding falls to the industry average:

27 = 365 * Accounts receivable / $176,500

27 * $176,500 = 365 * Accounts receivable

Accounts receivable = 27 * $176,500 / 365

Accounts receivable = $13,056.16

Increase in net income = Decrease in accounts receivable * 3%

Increase in net income = ($18,500 - $13,056.16) * 3%

Increase in net income = $5,443.84 * 3%

Increase in net income = $163.3152

Increase in net income = $163.32

Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000.
1. Calculate Roquan's deduction for qualified business income.
2. Assume the same facts as earlier, except Roquan's taxable income before the deduction for qualified business income is $300,000.

Answers

Answer:

A. $18,000

B. No QBI deduction

Explanation:

a) Calculation for Roquan’s deduction for qualified business income.

Using this formula

Roquan's qualified business income.

= 20% x QBI

Let plug in the formula

Roquan's qualified business income

= 20% x $90,000

Roquan's qualified business income= $18,000

Therefore Roquan’s deduction for qualified business income will be $18,000

b) Based on the information given if we assumed that Roquan's taxable income before the deduction for qualified business income is the amount of $300,000 which means that Roquan's income is higher than the amount of $213,300 hence, NO qualified business income deduction (QBI) will be allowed.

A household consists of a married couple and their two-year-old daughter. The couple's daughter had no income and lived with her parents all of last year. How many exemptions can the couple claim on last year's tax return if they file with the "Married filing jointly" status?​

Answers

Answer:

3 is the answer

1. Briefly describe laissez-faire economic policies in the Gilded Age.

2. Briefly explain one effect of laissez-faire economic policies in the Gilded Age.

3. Briefly describe one key historical similarity or difference between laissez-faire economic policies in the Gilded Age and economic policies in the Jacksonian Era.

Answers

Answer:

1. The Gilded Age is referred to as the period between 1870 and the early 1900s. It was an era characterized by rapid industrialization, laissez-faire capitalism, and zero income tax. Capitalists resisted government intervention and Captains of industry like John D. Rockefeller and Andrew Carnegie made fortunes.

The government on the other hand began to seriously shape labor policies

The Laissez-Faire (which is derived from the french word let them be or let them do what they want) was a combination of free-market ideologies, limited government intervention, and social Darwinism.

The liberals also resisted the government's initiatives to made lives better for citizens. They believed that by intervening in the social condition of people, they (especially the African Americans) would not be able to attain their full economic potential which can only be done through competition

Another policy that they imbibed was one that promoted the ability of the individual and the business owner to freely enter into labor agreements

 

2. These liberal policies enabled businesses within that region to expand as entrepreneurs were able to take more risks and invest within the economy

It provided people with the greatest incentive for capitalists to create wealth. This is one of the reasons the economic boom happened.

3. One major similarity between the economic policies in the Jacksonian Era and those of the Gilded Age is that they both promoted liberal trade.

One major feature of the Jacksonian economy is that it triggered a high level of the inflationary boom between 1832 and 1837. This inflationary condition is said to be the fall out of mismanaged policies throughout the administration of President Andrew Jackson.

Cheers

The brief description of the laissez-faire economic policies in the Gilded Age is:

There was free market policies which enabled the people do what they wanted. Social DarwinismLimited government intervention

Brief explanation one effect of laissez-faire economic policies in the Gilded Age is:

It enhanced economic progressMany capitalists got wealthy

One key historical similarity or difference between laissez-faire economic policies in the Gilded Age and economic policies in the Jacksonian Era is:

They promoted Liberal trade.

Gilded Age

This was characterized with technological advancement which also led to favourable economic policies which brought great economic prosperity to the people.

Read more about Gilded Age here:

https://brainly.com/question/639743

Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,200, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,720. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. Inventory fill in the blank 002d1202e07bfb8_2 fill in the blank 002d1202e07bfb8_3 Accounts Payable fill in the blank 002d1202e07bfb8_5 fill in the blank 002d1202e07bfb8_6 Accounts Payable fill in the blank 002d1202e07bfb8_8 fill in the blank 002d1202e07bfb8_9 fill in the blank 002d1202e07bfb8_11 fill in the blank 002d1202e07bfb8_12 fill in the blank 002d1202e07bfb8_14 fill in the blank 002d1202e07bfb8_15 fill in the blank 002d1202e07bfb8_17 fill in the blank 002d1202e07bfb8_18 fill in the blank 002d1202e07bfb8_20 fill in the blank 002d1202e07bfb8_21 fill in the blank 002d1202e07bfb8_23 fill in the blank 002d1202e07bfb8_24 Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank. fill in the blank 2aa3cd04cfa0046_2 fill in the blank 2aa3cd04cfa0046_3 fill in the blank 2aa3cd04cfa0046_5 fill in the blank 2aa3cd04cfa0046_6 fill in the blank 2aa3cd04cfa0046_8 fill in the blank 2aa3cd04cfa0046_9 fill in the blank 2aa3cd04cfa0046_11 fill in the blank 2aa3cd04cfa0046_12

Answers

Answer:

SHORE CO BOOKS:

Dec 31

Dr Accounts receivables Blue star Co. $109,760

Cr Sales $109,760

Dec 31

Dr Cost of goods sold $66,720

Cr Inventory $66,720

Dec 31

Dr Cash $111,560

Cr Account receivable Blue star Co. $111,560

Dec 31

Dr Account receivable Blue star Co $1,800

Cr Cash $1,800

BLUE STAR CO BOOKS

Dr Inventory $111,560

Cr Accounts Payable $111,560

Dr Accounts Payable $111,560

Cr Cash $111,560

Explanation:

Preparation of the journal entries for Shore Co.'s entry for the sale, purchase, and payment of amount due

SHORE CO BOOKS:

Dec 31

Dr Accounts receivables Blue star Co. $109,760

Cr Sales $109,760

[$112,000*(100%-2%)]

Dec 31

Dr Cost of goods sold $66,720

Cr Inventory $66,720

Dec 31

Dr Cash $111,560

Cr Account receivable Blue star Co. $111,560

($109,760+$1,800)

Dec 31

Dr Account receivable Blue star Co $1,800

Cr Cash $1,800

BLUE STAR CO BOOKS

Dr Inventory $111,560

Cr Accounts Payable $111,560

($109,760+$1,800)

Dr Accounts Payable $111,560

Cr Cash $111,560

($109,760+$1,800)

As part of the initial investment, Jackson contributes accounts receivable that had a balance of $25,581 in the accounts of a sole proprietorship. Of this amount, $1,347 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $807. The amount debited to Accounts Receivable for the new partnership is a.$25,581

Answers

Answer:

The amount debited to the Accounts Receivable for the new partnership is:

= $2,434.

Explanation:

a) Data and Calculations:

Accounts receivable balance = $25,581

less amount deemed completely worthless = $1,347

Balance after deduction = $2,434.

Provision for possible future uncollectible accounts = $807

b) The Accounts Receivable balance will not exclude the $807 provision for possible future uncollectible accounts.  The probability of not collecting the accounts is not established.

Daria plans to retire in 20 years and wants to know how much she will need to have in her account when she retires. She wants to be able to withdraw $5,000 per month for 25 years of retirement, and she expects her account to earn a nominal rate of 9 percent per year. Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Answers

We know that she has 20 years left until she retire

We need to find the amount she have to save and add to her saving per year for the the next 20 years.

Given she wants to be able to withdraw $5000 per month for 25 years

25 years = 300 months

$5,000 x 300 months = $1,500,000

she will needs one million and five hundred thousand dollars when she retire

Let's say she just started saving

Daria needs to have present value of the annuity of 25 years, PV is then calculated using the PV function as follows:

=PV(rate,nper,pmt)

=PV(9%/12,12*25,5000)

=595808.11

The present value should be 595808.11.

Calculation of the present value:

Given that,

The 25 years = 300

The rate is = 9% /12

PMT = $5,000

Now the following formula should be used.

=PV(rate,nper,pmt)

=PV(9%/12,12*25,5000)

=595808.11

Learn more about rate here: https://brainly.com/question/24334808

Which examples demonstrate common Law Enforcement Services workplaces and employers? Check all that apply.

Otto is a self-employed worker who provides legal advice to people accused of crimes.
Peng monitors people who are swimming at a beach.
Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.

Answers

Answer:

Zoraida works for the municipal government investigating crime scene evidence in a laboratory.

Colleen inspects travelers and baggage in an airport.

Asa sits in an office filling out paperwork to document crimes.

Explanation:

Criminal justice and law enforcement provide challenging but rewarding career paths. The examples of common law enforcement Services workplaces and employers are options 3,4, and 6.

What are some examples of common law enforcement services?

Local legal institutions include police departments and sheriffs. State agencies include state or highway patrol. Government agencies include the FBI and the U.S. Secret Service.

Local, regional, and individual levels of government provide different types of public office.

Hence, the examples of common Law Enforcement Services are

Option 3. Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.Option 4. Zoraida works for the municipal government investigating crime scene evidence in a laboratory.Option 6. Asa sits in an office filling out paperwork to document crimes.

To learn more about common law enforcement services. refer to the link:

https://brainly.com/question/25967537

“Money can not buy one of the most important things vital for your business: relationships. You might think now customer relationships drive your business? That’s true! Good customer relationships are based on good customer experience. Developing strong relations with customers and creating great customer relationship management examples encourage faster business growth, gain new customers, and retain the existing ones.” Based on the statement, explain FIVE (5) reasons why customer relationship is important for business success.

Answers

Answer:

The relationship with the customer is a strategic factor for commercial growth.The relationship with customers creates sales opportunities.The relationship with customers creates a relationship of trust.The relationship with customers creates loyalty.The relationship with customers solves problems quickly.

Explanation:

The relationship with customers is an essential factor for commercial success. This is because it allows a more personal contact, allowing the recognition of the customer's needs and promoting products, services and marketing that meets those needs, allowing the customer to feel supported by the company and create a loyalty relationship with it.

Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.

Answers

Answer:

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

31-Dec

Dr Interest receivable $1,750

Cr Interest revenue $1,750

31-Dec

Dr Deferred Revenue $4,000

Cr Revenue or Service Revenue $4,000

Explanation:

Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.

31-Dec

Dr Depreciation expense $7,000

Cr Accumulated Depreciation - Equipment $7,000

(Being to adjust 12 month depreciation)

31-Dec

Dr Interest receivable ($50,000 x 7% x 6/12) $1,750

Cr Interest revenue $1,750

(Being to adjust 6 month interest revenue accrued)

31-Dec

Dr Deferred Revenue ($16,000 x 3/12) $4,000

Cr Revenue or Service Revenue $4,000

(Being to record earned revenue for 3 months)

Qtr5g66677
Math problem

Answers

Answer:

The dot over a number signifies that it is a repeater which would go on for ever, as when we endeavor to describe 1/3 decimally as 0.33333 . . . . (etc)

With a series of numbers we place the dot over the first and last, as with 0.97979797979 . . . (etc)

The remarkable feature being that a proper fraction divided by 9s e.g. 46/99 is exactly equal to the numerator with the repeater sign followed by the decimal.

Quickbooks Online. IRS guidelines require specific information to substantiate deductible automobile expenses. Which 3 items are included in the substantiation requirements?

Answers

Answer:

✓Vehicle type

✓date placed in service

✓total mileage (including business, commuting and personal)

Explanation:

IRS guidelines available for automobile

deductible is that if one is using his cat for business purposes, the entire cost of ownership as well as operation can be deducted. But if the car is for business and personal purposes, the cost for the business use can be deducted.

The three items that are are included in the substantiation requirements are;

✓Vehicle type

✓date placed in service

✓total mileage (including business, commuting and personal)

1. Identify a research problem in your study area and coin topic based on the problem.

Answers

The correct answer to this open question is the following.

The research problem in my study area is the way industries and corporations are affecting climate change. The specific topic based on this problem is "How modern industries are impacting the environment."

I come up with this topic because it really concerns me.

Up until today, most companies and corporations' approach has been to earn money at all costs. However, the planet is suffering the consequences of over-exploiting raw materials and natural resources, directly impacting the environment.

Air pollution, water pollution, noise pollution, water scarcity, weather changes affection farming and the production of food, lack of rain in some parts of the planet, excessive storms in other parts of the globe, earthquakes, constant volcanic explosions, are some of the consequences of this irresponsible way of overexploiting raw materials that have seriously impacted our environment.

The invitation for the next generation of businessmen would be for a better form of Capitalism, focused on restoring some of the resources that have been exploited, and taking into consideration the employee's situations in the workplace. It is fine to think about getting rich. But no more at all costs.

Getting rich, yes. But now, thinking about practical ways to give back and taking care of planet Earth, and helping workers and employees to really prosper and grow.

Which type of delivery format would be the best choice for the keynote speech that welcomes employees?

a. manuscript
b. memorized
c. extemporaneous
d. impromptu

Answers

i think a. manuscript

Consumers spend _______ a year on credit card penalties and fees.

$10 million
$110 billion
$90 billion
$80 million

Answers

90 billion is the answer

1.Production runs can be scheduled in
A. only one shift
B. always two shifts
C. one or two shifts
D. up to three shifts
2.Hiring the Needed Complement will always eliminate
A. Overtime
B. worker layoffs
C. a Second Shift
D. strikes
3.Management should strive to
A. increase Turnover
B. decrease Turnover
4.Increasing Capacity tends to
A. reduce the Needed Complement
B. reduce the number of workers on Second Shift
C. reduce Overtime
5.Increasing Training Hours tends to
A. increase the Needed Complement
B. decrease the Needed Complement
C. neither increase nor decrease the Needed Complement
D. both increase and decrease the Needed Complement
6.Recruiting Costs are incurred when
A. Automation levels increase
B. Production runs increase and teams match hiring to Needed Complement
C. workers are assigned to a Second Shift
7.Assuming the Productivity Index is greater than 100%, adding Overtime will
A. increase the Productivity Index
B. decrease the Productivity Index
8.Worker training is entered by the
A. Hour
B. Dollar
9.Teams can eliminate all Recruiting Costs if they wish
A. True
B. False
10.Generally, Separation Costs will be incurred when
A. Production levels increase
B. Automation Levels increase
C. Production Levels decrease
D. Production levels decrease and / or Automation levels increase

Answers

Answer:

Explanation:

10)production levels decrease and/or automation levels increase

The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020

Answers

Answer:

$150 Decrease

Explanation:

                  Income Statement

                                      Present    Proposed

Sales                              $5,000    $5,350 [(5000+30%)-10%]

Variable 10%                  $2,000    $2,000 (2000*130%)

Contribution Margin      $3,000    $3,250

Fixed cost                           -          $400  

Net Operating Income $3,000    $2,850

Effect on Net Operating Income = $2,850 - $3,000 = -$150

On June 30, 2018, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31, 2018?

Answers

Answer:

$2,058

Explanation:

Present value = Amount * (Present value of $1: n=2, i=8%)

Present value = $60,000 * 0.85734

Present value = $51,440

Interest expenses = Initial value of equipment * Interest rate * Number of years

Interest expenses = $51,440 * 8% * 6/12

Interest expenses = $2,058

On January 1, 20X1, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salvage value, and will be depreciated by the straight-line method. On January 1, 20x1, it leased the machine to Child Company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 9%. Child Company has a December 31 reporting year. Use tables (PV of 1, PVAD of 1, and PVOA of 1 (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Required:
1. Why is this an operating lease for Child Company?
2. What are the amounts of the right-of-use asset and lease liab that Child Company should report on its balance sheet at December 31, 20X1?
3. How much lease expense should Child Company recognize in 20X1?

Answers

Answer:

1. Why is this an operating lease for Child Company?

The life of the asset is 10 years while the lease is only 3 years long, so it cannot be classified as a financial lease.

2. What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 20X1?

annual lease payment = $128,000 (ordinary annuity)

PVIFA, 9%, 3 periods = 2.5313

present value = $128,000 x 2.5313 = $324,006.40

3. How much lease expense should Child Company recognize in 20X1?

lease expense = PV of lease x interest rate = $324,006.40 x 9% = $29,160.58

You borrow $6,230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interest of 6 percent. What is the amount of each payment?a. $115.26b. $88.74c. $113.78d. $120.44e. $89.29

Answers

Answer:

orrow $6230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interes… ... of interest of 6 percent.

Explanation:

On January 1, 2021, Kapoor Co. sold equipment to its subsidiary, Howard Corp., for $125,000. The equipment had cost $150,000, and the balance in accumulated depreciation was $70,000. The equipment had an estimated remaining useful life of eight years and no salvage value. Both companies use straight-line depreciation. On their separate 2021 income statements, Kapoor and Howard reported depreciation expense of $86,000 and $64,000, respectively. The amount of depreciation expense on the consolidated income statement for 2021 would have been:

Answers

Answer:

$144,375

Explanation:

Excess depreciation on gain on sale of asset = [($125,000 - ($150,000 - $70,000)] $80,000) / 8

= ($125,000 - $80,000) / 8

= $45,000 / 8

= $5,625

Consolidated depreciation = $86,000 + $64,000 - $5,625

Consolidated depreciation = $144,375

So, the amount of depreciation expense on the consolidated income statement for 2021 would be $144,375

Novak Hardware reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 34,500 $ 21,000 Cost of goods purchased 177,000 155,000 Cost of goods available for sale 211,500 176,000 Less: Ending inventory 36,000 34,500 Cost of goods sold $175,500 $141,500 Novak made two errors: 1. 2021 ending inventory was overstated by $3,450. 2. 2022 ending inventory was understated by $6,350. Compute the correct cost of goods sold for each year.

Answers

Answer: See explanation

Explanation:

The correct cost of goods sold for 2021 will be:

= Beginning inventory + Cost of goods bought - Correct ending inventory

= 34500 + 177000 - 32550

= 178950

The correct cost of goods sold for 2022 will be:

= Beginning inventory + Cost of goods bought - Correct ending inventory

= 32550 + 155000 - 40850

= 146700

Note:

Correct ending inventory for 2021 will be: = Ending inventory - Overstated value

= 36000 - 3450

= 32550

Correct ending inventory for 2021 will be: = Ending inventory + Understated value

= 34500 + 6350

= 40850

On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $265,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Year Ended December 31 Inventory year end costs Cost index(relative to base year)
2021 $340,000 1.02
2022 350,000 1.06
2023 400,000 1.07
2024 430,000 1.10

Required:
Calculate inventory amounts at the end of each year.

Answers

Answer:

Avondale Lumber

Rebasing the Inventory at year-end using the dollar-value LIFO inventory method:

Year Ended     Inventory year     Cost index                Inventory Amount

December 31   end costs       (relative to base year)     at year-end

2021                  $340,000                  1.02                       $333,333

2022                   350,000                  1.06                       $330,189

2023                   400,000                  1.07                       $373,832

2024                   430,000                  1.10                       $390,909

Explanation:

a) Data:

Year Ended     Inventory year     Cost index

December 31   end costs       (relative to base year)

2021                  $340,000                  1.02

2022                   350,000                  1.06

2023                   400,000                  1.07

2024                   430,000                  1.10

b) The inventory at year-end costs is rebased using the cost index that is relative to the base year, by dividing the inventory costs by the cost index.

A company has fixed costs of $96,800. Its contribution margin ratio is 44% and the product sells for $61 per unit.
What is the company's break-even point in dollar sales?

Answers

$220,000

Explanation:

Calculation for the company's break-even point in dollar sales

Using this formula

Break-Even point in dollars sales= Fixed Costs ÷ Contribution Margin

Let plug in the formula

Break-Even point in dollars sales=$96,800/44%

Break-Even point in dollars sales=$220,000

Therefore the company's break-even point in dollar sales will be $220,000.

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

Answers

Answer:

Underapplied by $3,000

Explanation:

Calculation for what The Corporation's manufacturing overhead cost for the year was:

First step is to calculate the Predetermined Overhead rate

Predetermined Overhead rate=( $ 330,000/ 55,000)

Predetermined Overhead rate= $ 6 per labor hour

Now let calculate the Manufacturing overhead cost

Manufacturing overhead cost= (6 x 57 000)-$345,000

Manufacturing overhead cost=$342,000-$345,000

Manufacturing overhead cost=Underapplied by $3,000

Therefore The Corporation's manufacturing overhead cost for the year was:underapplied by $3,000


When originally purchased, a truck costing BD 23.000 had an estimated useful life of 8 years and an estimated salvage value of BD 3,000. After 4 years of
straight-line depreciation, the ascet's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage valoe. The
depreciation expense in year 3 cquals:
ABD 5,000
O & BD 5.750.
O CBD 2.875.
ODBD 2,500.

Answers

Answer:

d. BD 2,500

Explanation:

Accumulated Depreciation through the end of year 4 = [ Asset's cost - Salvage Value) / Estimated Useful Life] * Years Elapsed

= [(23,000 - 3,000)/8] * 4

= BD 10,000

Depreciation in Year 3 = [Asset's cost - Salvage Value - Accumulated Depreciation] / Remaining Estimated Useful Life

Depreciation in Year 3 = [23,000 - 3,000 - 10,000] / 4

Depreciation in Year 3 = 10,000 / 4

Depreciation in Year 3 = BD 2,500

Other Questions
From the end of 2010 to the end of 2011, M1 increased from $2,006 billion to $2,311 billion. By what percentage did M1 increase? The function d =45t gives the distance d Juan traveled in miles after t hours.is this discrete or continuous data? Are the two triangles similar? How do you know? Is water wet? provide explanation. Where is the atmosphere?i) on the earthiii) inside the earthii) around the earthiv) nowhere 3a -6solve for a PLEASE Use the exchange rate 1 = 1.15 to convert 23 into . Convert the exponential to a logarithmic form: 104 = 10,000Question 13 options:A) log 4 = 10,000B) log 10 = 4C) log 10,000 = 4D) log 4 = 10pleasseeeeee Is cloning and genetic engineering ethical? A figure has an area of 64 square units. Which describes the area of the figure after a dilation with a scale factor of 3/2?A)96 square unitsB)144 square units C)112 square unitsD)32 square units (4 1/4x + 8) + (-1 1/2x - 12) How can you and your family members add positive health influences to your daily lives? For example, you might start walking together one evening a week, or you could establish a routine of sitting down to break fast together. Write notes about your idea here. Then discuss your idea with the rest of your family. Take 49 point Please Help me.Write one page about something that happened to you. Correct writing with interest Grammar Suppose you have a tablet with a capacity of gigabytes. For a plain text book, one byte typically corresponds to one character and an average page consists of 2000 characters. Assume all gigabytes are used for plain text books.a. How many pages of text can the tablet hold?b. How many 500 page books can the tablet hold? PLEASE HURRY I WILL MARK BRAINIEST The new wing of an artmuseum has 3 timesas many windows asthe old wing. Together,both wings have32 windows. How manywindows are inthe new wing? Which statement accurately describes the Appalachian Plateau?The geography is divided between mountain peaks and valleys.BThe winters are snowy, but summers are warm and are not suitable for agriculture.The Plateau is located in northwest Georgia and is made of flat land with poor soil.DThe Plateau is located in northeast Georgia and frequently has cold winters and hot summers. Find the equation of a line that is perpendicular to the line y=1/9x+4 and contains the point (-9,0). Does this make sense? I have no idea what any of this means. If f(x)=3x-1 find the following f(3) f(2) Solve for k.10132339CAN U HELP PLEASE